Do You Really Need an Extended Warranty?

You and the salesman are closing the deal on your new car. Everything has gone well, there are smiles all around. Then comes the question: "Would you like to purchase an extended warranty?"

You're immediately caught off guard, and start thinking about whether an extended warranty would be a good investment to protect your new investment. But do you really need to spend $700 to $1000 on added protection in case of a large repair bill?

Opinions vary, but most experts say, point blank, that it's not worth it. For more details on why the value is questionable, check out these articles in Newsday and our Featured Article on the subject.

Before you consider buying an extended warranty you should check the warranties offered by manufacturers, especially now that most are offering better warranties than ever before to put some juice into sagging sales.

Be wary of salesmen who'll tell you that buying an extended warranty is the best thing to do, when in actuality, it's just a sure fire way for the dealership to get even more money out of you than it already has.

Tips for the Up-selling (Or)Deal after the Deal

When buying a new car, there is always the point after you agree to purchase a vehicle where you are passed off to a "financing specialist" (a.k.a. adept sales representative)  to deal with financing the vehicle and getting asked a litany of questions about warranties, protectants and other add-ons.

Here are a few tips about preparing for this process that were shared in a recent article on CNNMoney.com. Before you go to the dealer, check out your credit score and get loan quotes from other sources as a back-up and to know what you qualify for. Remember that the financing rate is negotiable too. As far as extra insurance, warranties, anti-theft add-ons and protectants, many experts like Lauren Fix are dubious of their necessity. Especially, since many cars these days come with long powertrain warranties, the best coats of long-lasting color and some sort of anti-theft protection built in.

On the other hand, many experts admit that add-ons might be worth consideration if you plan on having your vehicle for a long time, or if you are purchasing a valuable car. So before you have to sit across from a sales expert, you should know what your car comes with, a starting auto finance rate and if you really need any extra security in terms of maintenance and theft protection.

The Perfect Combo: A New Car Warranty Plus Roadside Assistance

Roadside assistance is meant to help you whenever you're stranded on the road, and it is often included with an original new car warranty. However, roadside assistance offerings vary for each manufacturer, to the extent that some automakers don't offer it at all.

Here's a brief list of the different roadside assistance services offered together with a new car warranty by several manufacturers, ranging from Mercedes' unlimited coverage to Toyota's lack of service:

Manufacturer Mercedes Benz Hyundai Mistubishi Lexus Volkswagen Volvo Honda Scion Toyota

Roadside Assistance Unlimited Unlimited (for five years) Unlimited (for five years) Unlimited (for four years) Unlimited (for four years) Unlimited (for four years) Not available Not available Not available

Roadside assistance can come in handy, providing towing, flat-tire changing, lost-key replacement, and even helping locate hotels or alternative transportation when your car is disabled.

Before you buy your new car, take a look at the roadside assistance included with the original warranty, and if it doesn't meet your needs, consider paying for either basic coverage through your car insurance policy, or full service coverage by joining an auto club such asAAA or Cross Country Automotive Services.

However, don't forget to take a look at all the elements included in a new car's warranty. Although roadside assistance is an important factor, it's not the only one. For example, although GM doesn't offer better roadside assistance than Mercedes Benz, overall it has the best new car warranty in the U.S.

Compare new car warranties and roadside assistance at The Auto Channel.

4 Tips For Buying A New Car Extended Warranty

If you're buying a new car and are considering purchasing a new car extended warranty, be sure this extended warranty includes the following characteristics:

Transferable: Some extended warranties end when the original owner sells the car. But if the warranty is transferable, it'll make a good selling point for prospective buyers if you decide to sell your car.

No cash layout required: Instead of having to pay the repair bill out of your pocket and wait to be reimbursed, it's advisable that your extended car warranty company pays the dealership directly.

Per visit deductible: While a per visit deductible will make you pay a set amount of money regardless of how many parts of the car are being repaired, watch out for warranties that instead have a per repair deductible, which applies to each part fixed.

Repairs performed anywhere: It's good to choose a warranty that gives you several options as to where to get your car fixed instead of requiring you to take your car to the dealership.

Ask for a free, instant online automobile extended warranty quote at Warranty Direct and learn more about your options.

Beware! New Car Warranty Scam

There is a new car warranty scam out there that is costing many unsuspecting drivers a lot of money. Here's how the scam works:

You get a call one day informing you that your car care warranty has expired and that you are now responsible for any repairs that the car may need. But you are in luck! If you act right now you can purchase a new car warranty at a very low rate. But if you want the deal you must act now. You must give your credit card number and bank account number so that the new warranty can be paid for and set up. You agree and give over the info, never to hear from the so-called warranty company again.

Don't fall for this trick. The Better Business Bureau advises that you should never give out your credit card number over the phone and never trust anyone who is trying to put that much pressure on you to buy. And above all else, never give out your bank account number over the phone.

Read more in "BBB Warns Of Car Warranty Scam."

New Car Warranty From GM: The Best In The Business

General Motors has just announced a new car warranty plan for its 2007 cars and light-duty trucks. The new automobile warranty is a 5-year/ 100,000-mile Powertrain warranty is fully transferable and also includes a greatly expanded roadside assistance program which lasts the length of the warranty.

GM says that this warranty is designed to show consumers just how reliable GM's new cars and trucks really are. GM is the last of the Big 3 American car companies not to be out-sold by Japanese companies like Toyota. Hopefully this incredible new warranty plan paired with GM's competitive pricing and quality vehicles will be enough to keep them on top in the upcoming years.

Read more in "GM Announces "Best" Warranty of Any Full-Line Automaker."

Make Sure Your Automobile Warranty Covers Your Needs

Buying a good automobile warranty can be tricky. How do you avoid paying for protection that you don't need while still getting peace of mind?

The following things are the main factors that you may want to consider when you purchase your warranty.

How long will you keep your car? If you plan long term ownership a longer car warranty may be good. Keep in mind that selling a car still under warranty can boost your asking price.

How much will you drive? Most warranties have mileage limitations. If you exceed the allotted mileage the car warranty is void. Keep this in mind if you have a long commute.

Do you need roadside assistance? Many drivers get roped into warranties by the promise of roadside assistance however; most of these programs only last for a year, not the full length of your warranty. Be sure to check the details.

Read more warranty tips in "Sorry Mate, Your Warranty Just Doesn't Cover This One."

Clutch Problems May Spell Automobile Warranty Trouble For Hyundai

Hyundai, who often advertises "America's Best Warranty", is now facing legal trouble for what some consumers view as a breach of the automobile warranty contract.  A class action lawsuit was filed against Hyundai last March claiming that Hyundai had installed faulty parts in their 2003 Tiburon.

The part in question is a clutch component that was failing on many of the 2003 new cars after only about 30,000 miles.  Hyundai car dealers however, deny the charges that the increasing number of failing clutches represents a problem with the make-up of the car.  Even though the failing parts are specifically mentioned under Hyundai's warranty coverage, the auto maker says that the clutch problem is resulting from bad driving habits and does not see it as covered under warranty.

Representatives for the lawsuit say that owners of the 2003 Tiburon are entitled to full coverage of the clutch repairs under the warranty. They feel that Hyundai is not upholding their end of the bargain.

Read more about the lawsuit in "Hyundai Blames Failure of Deformed Tiburon Clutch on Drivers: Class Action Filed."

Efficiency May Cut Warranty Costs

Original equipment manufacturers and suppliers shelled out $13 billion to cover warranty commitments in 2005, according to the Automotive Industry Action Group.
This pay out represents an 8% increase over 2004.

At panel discussions and in speeches, AIAG participants focused on improving the understanding of faulty parts and how to decrease the time required to deal with them. Such a change could result in a decrease in warranty costs.

These discussions and previous ones have centered on the importance of effective working relationships. And stressing how the various portions of the repair and maintenance chain can interact more efficiently.

Discussions that will lead to better warranty coverage for less is the goal. These discussions included a clearer understanding of strategy and technology to increase this efficiency.

BBB Warranty Arbitrator

The Better Business Bureau has offered car owners help with warranty disputes for 25 years. The business watchdog has a good relationship with all the major auto manufacturers and in 2005 was the arbiter of 37,862 warranty disagreements. Over the 25 year history of the BBB's Auto Line, they have helped 1.8 million car owners with warranty disputes.

While auto owners are not bound by the BBB arbitrator's decision, all auto manufacturers they deal with have agreed to accept the mediator's judgment. The result of this program seems to be very positive since there has been a reduction in the number of warranty complaints handled each year.

To read the entire story "BBB Warranty Dispute Settlement Program Completes 25th Year" go to Frost Illustrated.